Sun, Dec 01, 2002 - Page 11 News List

Dollar rises against euro

BLOOMBERG , NEW YORK

The dollar gained for a third week against the euro after evidence mounted that the US economy is strengthening while Europe's expansion slows.

Demand for dollars has risen as some investors moved money into the US to buy stocks and corporate bonds, betting the economic recovery will boost companies' profits, analysts said.

The US is a "better place to invest," said Murray Gunn, who helps manage US$121 billion at Standard Life Investments in Edinburgh, Scotland.

"That should help the dollar."

The dollar strengthened 0.3 percent in the week to US$0.9943 per euro at 2:30pm in New York.

The rally marks the first time in nine months that the dollar has gained for more than two weeks against the euro. The dollar has advanced 1.9 percent during the three-week rally, trimming its decline to 11.8 percent in the year.

Against the yen, the dollar rose to Japanese yen 122.56 from Japanese yen 122.29 yesterday. It has fallen 0.2 percent in the week, its first weekly decline in three.

A European consumer confidence index fell to a five-year low this month, the latest sign growth in the 12 countries that share the euro is faltering.

The European Commission said Friday its index fell to minus 14 from minus 12 in October. The inflation rate also fell for the first time in four months, slipping to 2.2 percent, a sign consumer demand in Europe is weakening.

By contrast, economic reports out of the US this week pointed to faster growth. First-time claims for jobless benefits fell last week to the lowest level this year, the government said.

Industry reports showed consumer confidence rose in November for the first time in six months while manufacturing in the Chicago region unexpectedly expanded this month.

This story has been viewed 3758 times.
TOP top